http://www.google.com/support/webmas...y?answer=35769
Updates include:
Redefine cloaking:
"Cloaking refers to the practice of presenting different content or URLs to users and search engines. Serving up different results based on user agent may cause your site to be perceived as deceptive and removed from the Google index"
Why should I report paid links to Google:
A bit of spin, but thankfully they also stated "Not all paid links violate our guidelines. Buying and selling links is a normal part of the economy of the web when done for advertising purposes, and not for manipulation of search results. Links purchased for advertising should be designated as such".
Thx
Blogoscoped